Impact of Sequestration on SF State Sponsored Programs- March 2013

The President has issued a sequestration order that will cut funding for grants and contracts.

How sequestration will affect sponsored programs at SF State depends on how each agency implements budget cuts. Below is a summary of information we have received to date:

NIH: Across the board cuts at 5.1% spread evenly across the Institutes. Under the Continuing Resolution (CR), expects to fund non-competing awards at 90%. Each Institute within the NIH may choose different strategies for applying the cuts. Examples of the impacts could include: not issuing continuation awards, or negotiating a reduction in the scope of your awards to meet the constraints imposed by sequestration. Additionally, plans for new grants or cooperative agreements may be re-scoped, delayed, or canceled depending on the nature of the work and the availability of resources. http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-043.html

NSF: expects to make nearly 1,000 fewer awards under sequestration, and to continue current awards at the current levels, with no impact to existing standard grants for FY 2013.http://www.nsf.gov/pubs/2013/in133/in133.pdf

DOD: senior research officials have estimated that DOD university research for FY13 will be cut by some $300M.

NASA: The NASA Administrator has indicated that $726M will be cut from FY13
budget levels. The NASA CFO has issued a memo to all recipients, indicating that our NASA awards may be impacted by the budget cuts.

We recommend that PIs maintain contact with their program officers for specific information, and work with their Grant Administrators to monitor projects closely to avoid cost overruns.

PIs should also make every effort to maintain reasonable expenditure rates on current or future allocations, as agencies may look to reduce funding where funds may not be expended.

We will keep you posted on any new developments, as we receive information from funders on how they expect to administer the cuts and the impact on SF State grants and contracts.